Reference: Reserve Bank of India
Update:
Enhancing Security of Card Transactions
In order to enhance security of Card Transactions RBI has issued below guidelines:-
a) At the time of issue / re-issue, all cards (physical and virtual) shall be enabled for use only at contact based points of usage [viz. ATMs and Point of Sale (PoS) devices] within India. Issuers shall provide cardholders a facility for enabling card not present (domestic and international) transactions, card present (international) transactions and contactless transactions, as per the process outlined in para 1 (c).
b) For existing cards, issuers may take a decision, based on their risk perception, whether to disable the card not present (domestic and international) transactions, card present (international) transactions and contactless transaction rights. Existing cards which have never been used for online (card not present) / international / contactless transactions shall
be mandatorily disabled for this purpose.
c) Additionally, the issuers shall provide to all cardholders:
- facility to switch on / off and set / modify transaction limits (within the overall card limit, if any, set by the issuer) for all types of transactions – domestic and international, at
PoS / ATMs / online transactions / contactless transactions, etc.; - the above facility on a 24×7 basis through multiple channels – mobile application / internet banking / ATMs / Interactive Voice Response (IVR); this may also be offered at branches / offices;
- alerts / information / status, etc., through SMS / e-mail, as and when there is any change in status of the card.
Implication:
The provisions of this circular are not mandatory for prepaid gift cards and those used at mass transit systems.
Update:
Kolikata Mahila Co-operative Bank Limited, Kolkata, West Bengal – Extension of Period of Directions:
RBI had issued Directions to Kolikata Mahila Co-operative Bank Limited, Kolkata, West Bengal from the close of business on July 09, 2019 which was valid till January 09, 2020.
RBI has now further extended the Directions for a period of six months from January 10, 2020 to July 09, 2020.
Implication:
The bank will continue to undertake banking business with restrictions till its financial position improves.
Reference: Central Board of Indirect Taxes and Customs
Update:
Levy and Collection of Social Welfare Surcharge (SWS) on imports under various schemes such as Merchandise Exports from India Scheme (MEIS), Services Exports from India Scheme (SEIS) etc:
clarifying that SWS ( Social Welfare Surcharge ) is calculated at the rate of ten per cent on the aggregate of duties, taxes, and cesses which are levied and collected under section 12 of the Customs Act, 1962.
the surcharge is in addition to any other duties of Customs or tax or cess chargeable on imported goods.
duty credit scrips are only a mode of payment of duty and not an exemption from duty even though the use of the said scrip is governed by an exemption notification.
SWS cannot be debited through duty credit scrips and therefore has to be paid by the importer in cash. The Circular directs the Directorate General of Systems to take necessary actions.
Implication:
With regard to past cases, the Circular notifies that past cases should not be disturbed and the payments made through debit in duty credit scrips may be accepted as revenue duly collected and recoveries in cash not be insisted on these cases.
Reference: Securities and Exchange board of India
Update:
Facility to view status of/deficiency in claim applications and making good those deficiencies:
The Justice (Retd.) R.M. Lodha Committee (the “Committee”) had initiated the process of refunds for investors of PACL having claim amount upto Rs. 5,000/- and till date 3,81,603 such investors/applicants have been paid. However, certain applications could not be processed further on account of one or more deficiencies.
The Committee had vide press release dated December 03, 2019 informed that an opportunity will be provided to all investors/applicants with claims upto Rs. 5,000/-, whose claim applications were found deficient, to make good deficiencies as may be applicable to their claims, so as to enable their claims to be processed.
Accordingly, investors/applicants with claims upto Rs. 5,000/- are requested to check the status of their claim applications online on https://www.sebipaclrefund.co.in and rectify the deficiencies, if any. The portal will be operational from January 24, 2020.
Implication:
The last date for checking the status of claim applications and/or rectification of deficiencies will be July 31, 2020.
Reference: Employment / Labour Laws
Update:
‘The Industrial Relations Code, 2019’ and ‘The Code on Social Security, 2019’, as introduced in Lok Sabha have been referred by the Speaker to the Standing Committee on Labour headed by Shri Bhartruhari Mahtab, MP for examination and report. The committee have decided to invite memoranda containing views/suggestions separately on each Code from the public in general and NGOs/ Experts/ Stakeholders and Institutions in particular.
The procedure for submitting written memoranda/suggestions and tendering oral evidence before the committee can be seen at our website www.loksabha.nic.in under link ‘Committees’→ Press Release.
